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National Australia Bank to Cut 4000 Jobs in Savings Drive

National Australia Bank to Cut 4000 Jobs in Savings Drive

Frances Clayton | November 4, 2017, 0:09

NAB delivered a $5.3 billion statutory net profit for the year and cash earnings were up by 2.5 per cent to $6.6 billion.

'That's on top of three billion dollars, so it's a big investment to make our bank stronger and fitter for what's going to be a challenging environment ahead'. Some 2,000 new jobs will be created.

NAB also announced changes to its executive leadership team, with Managing Director and CEO of Bank of New Zealand being appointed Chief Customer Officer of Business and Private Banking, replacing Angela Mentis who will take on Anthony Healy's role.

However, the bank said there should be no cut to its dividend for at least the current financial year.

'We're doing that with confidence and we're investing 1.5 billion dollars more than what we normally would normally spend in the next three years.

"We're going to simplify the bank dramatically and as we do that we're going to need less people to do the business the bank does", Mr Thorburn said. That was in line with the A$6.67 billion median estimate of 15 analysts surveyed by Bloomberg. The bank paid a dividend of AU 99 cents, matching what shareholders received in the first half of the year.

The profit was affected by a 1.3 per cent increase in bad and doubtful dents to $180 million, although the bank said overall credit quality improved as percentage of the total loans. NAB shares ended 2.83 percent lower at AU$31.95.

The job cuts and strategic refocus came as the bank announced unaudited cash profit, which excludes one-time items, rose to A$6.64 billion in the year ended September 30, from A$6.48 billion a year earlier.

Cash profit - the bank's preferred measure that strips out one off gains and losses - was up a more modest 2.5 per cent to a record $6.6 billion. Commonwealth Bank, Australia's largest, operates on a different reporting schedule.